When Comparing Activity-Based Costing (ABC) with Conventional Costing Methods, Which

question 16

Multiple Choice

When comparing activity-based costing (ABC) with conventional costing methods, which of the following is the key benefit of the ABC method?

• A) It is cheaper to implement.
• B) It is based on only one or two factors, generally volume-related.
• C) It is simpler.
• D) It provides more accurate cost numbers.

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Definitions:

Detoxify Drugs

The process by which biological systems, often notably the liver in humans, modify and remove the toxic effects of drugs and other harmful substances.

Reproduce Rapidly

The ability of organisms to produce a high number of offspring in a short amount of time, often leading to quick population growth.

Horizontal Gene Transfer

The movement of genetic material between unicellular and/or multicellular organisms through mechanisms other than traditional reproduction.

Recombination

The process by which pieces of DNA are broken and recombined to produce new combinations of alleles.